Press release
Minister Donohoe signs into national law finalised EU prudential rules for investment firms
Published on
Last updated on
Published on
Last updated on
The Minister for Finance, Paschal Donohoe, has signed three Statutory Instruments (S.I. 302 of 2022, S.I. 303 of 2022 and S.I. 304 of 2022) to complete the transposition of Directive (EU) 2019/2034 (the Investment Firms Directive or IFD) and the implementation of Regulation (EU) 2019/2033 (the Investment Firms Regulation or IFR) into Irish law. IFD and IFR puts in place a new prudential framework for investment firms authorised under the Markets in Financial Instruments Directive (MiFID II). However, large investment firms will remain subject to the prudential requirements of the Capital Requirements Directive and Regulation (CRD/CRR) while Article 62(6) of IFD requires Member States to impose an obligation on large systemic investment firms (Class 1 Firms) to apply for re-authorisation as credit institutions.
These regulations, which should be read along with S.I. 355 of 2021 and S.I. 356 of 2021, transpose Article 62(6) of IFD into national law by inserting a new authorisation process (Part IIA) into the Central Bank Act, 1971 (No. 24) enabling Class 1 Firms to apply for re-authorisation as credit institutions.